Anti-Khadafy rebel reacts in front of an unexploded bomb from an air strike by pro-Libyan leader Moammar Khadafy warplanes, in the town of Ras Lanouf on Tuesday.AP

TRIPOLI, Libya — Moammar Khadafy’s embattled regime dug in Tuesday as it fought violently with Libyan opposition rebels for territory and disputed claims that the veteran ruler may be willing to relinquish power to end the bloody uprising.

Forces loyal to Khadafy renewed attacks on Zawiyah, a rebel-held city 30 miles (48 km) west of the capital of Tripoli that has been the site of some of the fiercest battles during the conflict. The town was described as “a city of ghosts” by one eyewitness, who requested anonymity.

“Here, it is chaos. Buildings completely crumbled, mosques brought down to ashes, blood flowing through the streets,” he told Sky News Tuesday afternoon. “No human should go through this … what kind of human would do this to another human?”

“This is a completely full attack. Approximately 50 tanks have been bombarding the city, crushing everything in sight.”

“It started at 10:00am today [Tuesday] and still hasn’t finished. There are now a couple of aircraft hovering,” the witness said, adding that Khadafy’s forces were targeting the town’s main square where protesters have gathered.

Multiple air strikes and heavy shelling also pounded rebel positions near the Libyan oil port of Ras Lanuf Tuesday.

The regime’s warplanes bombed a block of apartments and a rebel checkpoint on the edge of town, according to AFP. One side of the two-story block was blown away but no casualties were reported.

As the attacks continued, Khadafy’s forces were fortifying the front line in Ras Lanuf in a sign that they could be digging in for a lengthy battle there, Saad Hamid told AFP. He described himself as a media official for the rebels’ leadership council.

“They are fortifying just behind the front line. They are digging trenches and making fortifications. They have brought up rocket launchers, tanks and artillery. They have also intensified air strikes,” he told AFP.

“We now have reinforcements on the way and they are also making preparations,” Hamid added.

While the violence escalated, scores of people inside Libya’s borders continued to seek refuge outside the country.

In Tripoli, thousands descended on the city’s airport, where an increasing sense of anxiety was evident among those attempting to leave, Sky News reported.

Many of those waiting have no money and nowhere to go, according to Sky News, while the screens that normally show flight information in the airport have been transmitting pictures of Khadafy and his soldiers.

Meanwhile, Khadafy’s embattled regime disputed claims Tuesday that the leader would give up his four decades in power to end the uprising amid reports of a split in his inner circle.

The rebel-led governing council, based in Benghazi, in eastern Libya, confirmed that it received an invitation for peace talks, which was rejected.

Former justice minister Mustafa Abdeljalil said the offer was made by activist lawyers from capital Tripoli acting as go-betweens, AFP reported.

Abdeljalil told Al Jazeera Khadafy would not be pursued for war crimes by the opposition if he left the country within 72 hours.

“If he leaves Libya immediately, during 72 hours, and stops the bombardment, we as Libyans will step back from pursuing him for crimes,” the former minister said.

Mustafa Gheriani, a media organizer at the rebels’ main headquarters at the court house in Benghazi, confirmed that there was an attempt at mediation which was rejected. “We’re not going to negotiate with him. He knows where the airport is in Tripoli and all he needs to do is leave and stop the bloodshed,” he said.

A Libyan government official strongly denied that the regime made an offer of peace talks. “It’s rubbish. It’s very annoying to comment on such bull,” the official said.

But a source told The Wall Street Journal that reform-minded officials in Khadafy’s government were lobbying for a plan that calls on Khadafy to cede power to a council of technocrats who could shepherd a transition toward democratic reforms and a government based on modern institutions.

Under this plan, Khadafy would be given an honorary title reflecting his service to the country but be removed from day-to-day decision-making, according to a person familiar with the matter, who told the Journal that members of Khadafy’s family were briefed on the plan.